15 . Question ( TCO 5 ) Which one of the following is not an assumption of CVP analysis ?
1 . Question ( TCO 5 ) A company has total fixed costs of $ 210,000 and a contribution margin ratio of 30 %. How much sales are necessary to break even ?
2 . Question ( TCO 5 ) How much sales are required to earn a target income of $ 70,000 , if total fixed costs are $ 100,000 and the contribution margin ratio is 40 %?
3 . Question ( TCO 6 ) For which one of the following budgeting aspects does the budget committee generally have the responsibility ?
4 . Question ( TCO 6 ) Under what situation might a budget be most effective ? 5 . Question ( TCO 6 ) How does long-range planning compare to a master budget ?
6 . Question ( TCO 6 ) Which one of the following is a source of information used to prepare the budgeted income statement ?
7 . Question ( TCO 7 ) When is a static budget most appropriate in evaluating a manager ’ s performance ?
8 . Question ( TCO 7 ) Which type of center is the housekeeping department of a manufacturing company ?
9 . Question ( TCO 7 ) For which of the following is an investment center manager responsible ?
10 . Question ( TCO 7 ) Merck Pharmaceuticals is evaluating its Vioxx division , an investment center . The division has a $ 45,000 controllable margin and $ 300,000 of sales . How much will Merck ’ s average operating assets be when its return on investment is 10 %?
11 . Question ( TCO 11 ) Financial and managerial accounting are both concerned with the economic events of an enterprise . Similarities between financial and managerial accounting do exist , but they have a different focus . Briefly distinguish between financial and managerial accounting as they relate to ( 1 ) the primary users , ( 2 ) the type and frequency of reports , ( 3 ) the purpose of reports , and ( 4 ) the content of reports .
12 . Question ( TCO 4 ) Are short-term creditors , long-term creditors , and stockholders primarily interested in the same characteristics of a company ? Explain .